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1.
What is Stamp Duty?
Stamp duty is the tax payable to the government for
changing the documents that specify who owns a particular
property.
2. How much Stamp
Duty will I have to pay?
Depending on your status as a buyer and the type of
property you are purchasing, stamp duty can form a
considerable expense. The amount of stamp duty applicable
to your purchase depends on several key factors:
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Status
as a buyer:
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First
time buyer, Owner-occupier or Investor
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Property
Type:
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Second-hand
or New home
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Floor
Area:
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The
size of the property
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3.
What is my status as a buyer?
First
time buyers:
A first time buyer is a person who has not previously
purchased or built a house or apartment anywhere in the
world and who is purchasing the property for use as their
main residence and not buying the property in order to
rent it out as an investor.
Owner-occupiers:
An owner occupier is a person who purchases an apartment
or house for use as their principal residence.
Investor:
A person buying a property as investment, examples include
a second home, or purchasing a property in order to let it
out.
4.
What type of home are you buying – how much Stamp Duty
applies to you?
New Homes
First-time buyers do not have to pay any stamp duty on new
homes.
For Owner occupiers the following rules apply:
- On a property where the floor area is less than 125 sq.
metres - No stamp duty
- On a property where the floor area is greater than 125
sq. metres, stamp duty is payable at the following rates:
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Property
Value
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Rate
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Up
to €125,000
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Exempt
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Next
€875,000
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7%
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Balance
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9%
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Investors also pay stamp duty on new homes according to
the above table
Second hand homes
First-time buyers do not have to pay any stamp duty on
second hand homes.
Owner occupiers and Investors pay stamp duty at the
following rates:
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Property
Value
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Rate
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Up
to €125,000
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Exempt
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Next
€875,000
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7%
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Balance
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9%
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5. When is Stamp
Duty payable?
When closing the sale, your solicitor will calculate the
exact stamp duty due and you will be required to pay this
amount to the Revenue Commissioners. Your solicitor will
usually arrange this payment.
6. Stamp Duty on
Land and Sites
Stamp duty for the purchase of land & sites is based
solely on the price and there are no reductions for
first-time-buyers or owner-occupiers.
It is calculated as follows:
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Price
of Property:
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Stamp
Duty Rate
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Up
to €10,000
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0%
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€10,001
- €20,000
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1%
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€20,001
- €30,000
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2%
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€30,001
- €40,000
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3%
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€40,001
- €70,000
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4%
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€70,001
- €80,000
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5%
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€80,001
- €100,000
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6%
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€100,001
- €120,000
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7%
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€120,001
- €150,000
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8%
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€150,000+
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9%
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7.
Clawback of Stamp Duty
The exemption from stamp duty for first-time house buyers
and buyers of certain new homes is currently clawed back
if the purchaser rents out the home within 5 years of date
of purchase. This clawback period is being reduced to 2
years for all deeds of transfer executed on or after 5
January 2007.
For deeds of transfer executed before 5 December 2007, if
that house or apartment is rented out on or after 5
December 2007, it will not involve a claw-back of relief
where this happens in the third, fourth or fifth year of
ownership.
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